Uber lays off hundreds more workers as it struggles to make money

FILE PHOTO: A screen displays the company logo for Uber Technologies Inc on the day of its IPO at the New York Stock Exchange (NYSE) in New York, US, May 10, 2019. REUTERS

Uber laid off 435 workers in its product and engineering teams Tuesday, the company’s second round of cuts in recent months as it struggles to make money.

The cuts, which total about 8% of Uber’s global product and engineering group, follow 400 layoffs in July from the marketing team. In a message to employees about the layoffs Tuesday that was viewed by The New York Times, Uber’s chief executive, Dara Khosrowshahi, said the company had gone off course as it grew and must streamline to regain its competitive edge.

“In the past, we grew our teams rapidly and in a decentralised way. This made sense as we worked to scale the business globally and find product-market fit,” Khosrowshahi wrote in the email, which echoed what he said in July with the previous layoffs. “But at a certain point, bigger teams do not mean better results. It’s critical we get our edge back and continually push ourselves to do better.”

Uber has been under pressure this year over its long-term viability. In August, it reported a record quarterly loss of $5.2 billion and its slowest-ever revenue growth.

Khosrowshahi has shaken up Uber’s top ranks and tried to cut costs. After cutting jobs in the marketing team in July, he instituted a monthlong hiring freeze and instructed executives to reevaluate the size of their teams. In addition, he pushed out top executives, including his chief operating officer and chief marketing officer. Uber’s board has also undergone some turnover.

Uber employs more than 27,000 people globally, nearly half in the United States, a company spokesman said.